Bitcoin [BTC], Litecoin [LTC], Ethereum and XRP might hike further due to US-China Bond ‘Sell-off’


The US – China trade war has made waves in the present-day financial and trade system. Tom Lee, Co-founder of Fundstrat, recently stated that the situation between the two nations could potentially trigger systematic meltdown, where crypto was “correlated.”

Such a correlation was also shared by CoinShares CSO, Meltem Demirors, stating that there might be an indirect relation between the recent Bitcoin rally and the US-China trade war.

According to a recent article by Forbes, the current trade war might eventually spread across the US bond market if China sells their US treasuries. This could potentially send Bitcoin, Ethereum, XRP, and Litecoin surging.

Since the beginning of the year, Bitcoin has massively surged and gained approx 130% in terms of price valuation. The trade war between US and China was also shifting from tariffs to technology and hence, Bitcoin’s demand has risen.

Over the last few weeks, crypto has collectively risen in value whereas gold’s valuation was very neutral, leading to speculation that investors were “concerned” with the trade wars taking place on a global platform. It was indicated that the crypto-rally depended on how early the trade war was going to spread across the US bond market.

Ruggero Gramatica, Founder and CEO of Yewno, explained the scenario and hypothesized a possible outcome. He said,

“Upon US bonds sell-offs, money would then flow to other Treasury bonds. Gold is an alternative yet with much less return, liquidity and it has high carrying costs. Bitcoin, however, can observe a surplus of money flow as an alternative store of value pushing cryptocurrencies prices up. Bitcoin, and consequently other cryptocurrencies, is arguably a superior store of value due to its durability, limited supply, predictable inflation and ease of transfer.”

However, Gramatica stressed that the possibility was very small as the aforementioned move would be disastrous for China. Such a situation would devalue the US Dollar against the yuan, making all Chinese exports more expensive in the US continent.

The post Bitcoin [BTC], Litecoin [LTC], Ethereum and XRP might hike further due to US-China Bond ‘Sell-off’ appeared first on AMBCrypto.